The Morgan Shakedown

A landmark that shows how much politicians now control U.S. finance.

Updated Oct. 20, 2013 10:51 p.m. ET

The tentative $13 billion settlement that the Justice Department appears to be extracting from J.P. Morgan Chase needs to be understood as a watershed moment in American capitalism. Federal law enforcers are confiscating roughly half of a company's annual earnings for no other reason than because they can and because they want to appease their left-wing populist allies.

The settlement isn't final and many details weren't available on the weekend, but we know enough for Americans to be dismayed. The bulk of the settlement...